However, the government shutdown is weighing on the mortgage market, according to the MBA.

"Purchase applications for government programs dropped by more than 7 percent over the week to their lowest level since December 2007, and the government share of purchase applications dropped to its lowest level in almost three years," says Mike Fratantoni, the MBA's vice president of research and economics.

Applications for home purchases -- a leading gauge for future home sales -- dropped 4.8 percent last week, the MBA reports. Meanwhile, applications for refinancings rose 3.3 percent.